AdWords Positioning

A lot of people like to know, how the position of the advertisements works. Well there are a lot of different aspects that work together to finally show your ad word advertisement on Google. Every time a user searches for something, an auction takes place in the background. The winner of the auction is not necessarily the shop with the highest bid!

Google tries to show the most relevant ad for each user and each search query. The quality score and the bid are important factors that influence the position of your AdWords advertisement.

But Google is also a company that wants to make money – and they do! That’s why the click-through-rate is a very important factor when it comes to the placement of your ad, too.

To give an example:

Let’s say you have a keyword with quality score 7 and you are willing to pay 10 cent per click on your AdWords advertisement and your are ranked 1st within the AdWords results and the click through rate of your keyword is 5%, this brings Google 10 cents for every click on your ad.

Your competitor books the same keyword, same quality score, is also willing to pay 10 cents for every click, but the conversion rate is 6% - well it is easy to figure out which advertisement will be shown most of the time – the one where Google makes more money.

That is why the advertisement and the keywords have to be related as good as possible. This will give your advertisement a better click through rate and your ad will be presented more often.

It is important, that your advertisement is shown within the first 3-4 AdWords advertisements; otherwise they might not get enough attention from the user. An advertisement on position 5 downward most of the time does not get enough customers to your website. You do not have to be on position 1! We know that the return on invest sometimes is better if your ad is listed in 2nd, 3rd or 4th place.

Back in the days there were SEA provider like Overture, who gave away the positions to the highest bid. The system was easier to handle but not necessarily cheaper and by far not better. It was possible to bid on any keyword even though your website did not have anything to do with the product.

If you want your advertisement to be shown on position 1-3, the quality score is very important, but also your bid has to exceed the top of page bid estimate. It is easy to exceed the bid, but it is hard to get the quality score needed.

It is our goal to get your advertisements on top of page position when it makes sense and to do that with the lowest cost per click.

You want to stay up to date and get free information about Search Engine Marketing, Pay per click and AdWords?